Sep 12, 2012: Beginning of End

Please remember this date, Sep 12, 2012. This will certainly be a historical date as the start of the final jurney towards the total crash of the world reserve currency, the US$! If you have read my blogs in the past a couple of years, you know I have talked about the problems of currencies numerous times. I have said both US$ and Euro are toilet papers and will eventually lose all their face values. But I have never got such a strong feeling, when Bernanke announced the QE3 or more precisely QE Forever on that day, that US$ is really entering the final stage of its life. Friends, this is a very scary world that almost all the countries are trying their best to debase their own currency. The race to the bottom has started over 10 years ago and become more and more fiercely as time passes by. Just the in the past few months, the UK central bank announced QE, followed by the ECB with unlimited QE in the EU, followed by the US Fed with also unlimited QE, followed by the Japanese central bank to further step up its over 20 years of QE, and likely followed by the Chinese central bank with more stimulus to be announced. This is the fundamental reason why precious metals, especially gold and silver will go up and up with the sky as the limit! See what has happened regarding the gold price (GLD) vs major currencies in the past 5 years. All the paper money has go down in value in a large margin in the past 5 years, and will be much more so if you look at the past 10 years chart.  If saving your hard-earned money in the bank is still your main means for retirement, you really need to wake up. Your purchasing power will certainly be wiped out relentlessly over time.